ACC q1,5,9

[yun yun]

hello plz check my ans and point out any mistakes and suggestions k?

Thanks!


1a) 31st December
b) Singapore Dollars
c) HTL Company was founded at Singapore in 1976.
d) HTL Company was publicly listed on the Singapore exchange
securities Trading Limited (SGX-ST) in 1993
e) 11, Gul Circle, Singapore 629567
f) Chairman : Phua Yong Pin
CEO : Phua Yong Tat
g) 0.425 (Singapore Excahnge) izit the share price or index? Want
to insert the screenshot?
h) Market capitalization = share price × number of shares
outstanding
= 0.425 × 416,563
= $ 177,039.275
Not sure whether have I taken the correct number to use?!?



5a) Cost flow assumption adopted by HTL Group is on a weighted average
basis.
The adopted weighted average assumption is appropriate as the cost
incurred while bringing the inventories to their present location and
conditions, costs of raw materials, direct labour, other direct costs
and related production overheads except for borrowing costs was spread
out evenly to every inventory which resulted in a more relevant and
accurate gross profit as well as ending inventory. LIFO results in the
lowest income, FIFO the highest, and weighted average an amount in
between assuming rising prices.HTL consistently determined the cost of
raw materials, work-in-progress and finished goods using the weighted
average basis.

b)
8159/196373 ×100% = 4.15%

c) Total amount of inventory-related impairment expense: $ 8,159

d)
2009 2008
Average Inventory = (Beginning Inventory+Ending Inventory)/2

(197656+196373)/2
= 197014.5 (195826 +197656)/2
= 196741
Inventory turnover ratio = (Total cost of goods sold)/(Average
Inventory)
381609/197014.5
= 1.937
442177/196741
= 2.248

Average days’ inventory available = (365 days)/(Inventory turnover
ratio)
365/1.937
=188.44 days

365/2.248
=162.37 days




Definition of inventory management
Inventory management is primarily about specifying the size and
placement of stocked goods. Inventory management is required at
different locations within a facility or within multiple locations of
a supply network to protect the regular and planned course of
production against the random disturbance of running out of materials
or goods. The scope of inventory management also concerns the fine
lines between replenishment lead time, carrying costs of inventory,
asset management, inventory forecasting, inventory valuation,
inventory visibility, future inventory price forecasting, physical
inventory, available physical space for inventory, quality management,
replenishment, returns and defective goods and demand forecasting.
Balancing these competing requirements leads to optimal inventory
levels, which is an on-going process as the business needs shift and
react to the wider environment.
Not sure how to answer!!!


9. The provision for warranty by HTL Holdings is recognized for
expected warranty claims based on past experience of repairs and
replacements. The provision for warranty decreased from $3,340 in year
2008 to $2,870 in year 2009 most probably due to the lower inventory
turnover ratio in 2009. As reflected by the cost of sales row in the
annual report, the sales for 2009 dropped slightly from $646,203 to
$605,338. The inventory ratio of year 2009, 1.937 is lower too
compared to 2008’s 2.248. These figures implied that less goods were
sold and therefore the provision for warranty will be lower than that
of 2008.

[FADHILAH! xD]

Hey I just saw your emails! Which one is your actual answer, the
attachment or this email?

[yun hui leow]

Actually both of them r the same but err i think u jz ga thru the one which i've posted on discussion. That is confirmed to be the actual answer. HAHA

> Date: Sat, 30 Oct 2010 17:51:19 -0700
> Subject: Re: ACC q1,5,9
> From: xsmo....@gmail.com
> To: accgr...@googlegroups.com

[Fadhilah Abdul Rahman Zamawi]

Ok no prob!